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Updated about 9 years ago on . Most recent reply presented by

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22
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Keith N.
  • Investor
  • Ottawa, IL
34
Votes |
22
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For a Solo(k), is rental income equal to self-employment Income?

Keith N.
  • Investor
  • Ottawa, IL
Posted

I apologize if this has already been answered.  I tried searching for the answer to my question, but was unable to find it.

I just finished reading the BP book on tax strategies and am interested in setting up a solo 401(k).  One of the requirements is that there must be self-employment income.  I don't sell, flip, wholesale, or have any other income that would be schedule C.  I have 17 units that generate rental income.  I know that rental income isn't subject to self-employment taxes, but is it considered self-employment income for purposes of funding a solo(k)?  I appreciate your help.

  • Keith N.
  • Most Popular Reply

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    Dmitriy Fomichenko
    #1 New Member Introductions Contributor
    • Solo 401k Expert
    • Anaheim Hills, CA
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    Dmitriy Fomichenko
    #1 New Member Introductions Contributor
    • Solo 401k Expert
    • Anaheim Hills, CA
    Replied

    No, rental income is considered to be passive income. You need active (earned) income.

    • Dmitriy Fomichenko
    • (949) 228-9393
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